The Analytical Overview of the Main Currency Pairs on 2017.11.02

The EUR/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.16465

Open: 1.16222

% chg. over the last day: -0.15

Day's range: 1.16130 – 1.16718

52 wk range: 1.0341 – 1.2069

Since the beginning of this week, the EUR/USD currency pair is being traded in the flat. During this period, strong support and resistance levels were formed: 1.16200 and 1.16600, respectively. The market is waiting for additional drivers. Tomorrow a report on the labor market in the US will be published, which will have a significant impact on the further balance of power on major currency pairs. We recommend opening positions from key levels.

The economic calendar for 2017.11.02:

- Statistics on business activity in the manufacturing sector and the labor market in Germany at 10:55 (GMT+2:00);

- The preliminary data on the labor market in the US at 14:30 (GMT+2:00).

The signals of the indicators are ambiguous. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is in the positive zone and continues to rise, indicating a bullish sentiment on EUR/USD.

Stochastic Oscillator is located in the neutral zone, the %K line is below the %D line, which signals the sale of EUR/USD.

Trading recommendations

Support levels: 1.16200, 1.15800

Resistance levels: 1.16600, 1.17000, 1.17350

If the price fixes above 1.16600, EUR/USD is expected to rise. The movement is tending to 1.17000-1.17350.

Alternative option. If the price fixes below the support level of 1.16200, it is necessary to consider sales of EUR/USD. The target level of movement is 1.15800-1.15500.

When following the positions, we recommend using a trailing stop.

The GBP/USD currency pair

Technical indicators of the currency pair:

Prev Open: 1.32844

Open: 1.32489

% chg. over the last day: -0.20

Day's range: 1.32437 – 1.32991

52 wk range: 1.1450 – 1.3618

At the moment, the technical pattern on GBP/USD is ambiguous. The following key levels of support and resistance can be identified: 1.32450 and 1.33000. Investors took a wait-and-see attitude before the meeting of the Bank of England. It is expected that the regulator will raise the key interest rate to 0.50%. These events can cause a significant demand for the pound. It should be recalled that earlier representatives of the Central Bank were concerned about the significant increase in consumer prices in the country.

At 14:00 (GMT+2:00), the Bank of England will decide on the interest rate.

We also recommend paying attention to the index of business activity in the construction sector of the UK at 11:30 (GMT+2:00).

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are quite strong dynamic levels of support and resistance.

The MACD histogram is located near the 0 mark.

Stochastic Oscillator is in the neutral zone, the %K line is below the %D line, which signals to sell GBP/USD.

Trading recommendations

Support levels: 1.32450, 1.32000

Resistance levels: 1.33000, 1.33500

If the Bank of England increases the key interest rate, we recommend considering buying GBP/USD. The movement is tending to 1.33500. When following a position, one should use a trailing stop.

Alternative option. If the price fixes below the support level of 1.32450, you need to look for entry points to the market to open short positions. The movement is tending to the round level of 1.32000.

The USD/CAD currency pair

Technical indicators of the currency pair:

Prev Open: 1.28899

Open: 1.28662

% chg. over the last day: -0.10

Day's range: 1.28237 – 1.28756

52 wk range: 1.2059 – 1.3795

At the moment, a correction movement is observed on the USD/CAD currency pair. The trading instrument has formed a local support level of 1.28350. The mark 1.28750 is already a "mirror" resistance. The Fed's press conference did not have a significant impact on the dynamics of the major currency pairs. In the near future, a further correction of USD/CAD is not excluded. We recommend paying attention to the oil quotations dynamics.

Today, the news background on Canada's economy is calm.

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA.

The MACD histogram is in the negative zone and below the signal line, which indicates a correction of the USD/CAD quotes.

Stochastic Oscillator is located in the neutral zone, the %K line is above the %D line, which signals the purchase of USD/CAD.

Trading recommendations

Support levels: 1.28350, 1.27850

Resistance levels: 1.28750, 1.29100

If the price fixes below the local support of 1.28350, further correction on the USD/CAD currency pair is expected. The target movement level is 1.27850-1.27750.

An alternative may be the growth of the USD/CAD currency pair to the level of 1.29000-1.29100.

The USD/JPY currency pair

Technical indicators of the currency pair:

Prev Open: 113.652

Open: 114.129

% chg. over the last day: +0.48

Day's range: 113.734 – 114.214

52 wk range: 99.53 – 118.67

On the USD/JPY currency pairб there was an ambiguous technical pattern. The trading instrument is in a sideways trend. The key trading range is 113.800-114.200. Positions should be opened if the price fixes above/below these markers. We recommend paying attention to the US government bonds yield.

Today, the news background on the Japanese economy is calm.

The price has fixed above 50 MA and 200 MA, which indicates the power of buyers.

The MACD histogram is located in the positive zone, but below the signal line, which gives a weak signal to buy USD/JPY.

Stochastic Oscillator is in the neutral zone, the %K line is crossing the %D line. There are no signals at the moment.

Trading recommendations

Support levels: 113.800, 113.450, 113.000

Resistance levels: 114.200, 114.500

If the price fixes above the level of 114.200, we recommend considering buying USD/JPY. The target movement level is 114.500-114.750.

Alternative option. If the price fixes below the support level of 113.800, it is necessary to consider selling USD/JPY. The movement is tending to 113.450-113.000.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer,
and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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